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Speaking in Dublin, Christine Lagarde of the IMF said that EU member states, and Ireland in particular, would need to brace themselves for an “influx” of finance companies that will move from London to alternative finance hubs once the UK quits the EU.
Taking on these companies would require upping regulatory and “supervisory capacities”, Ms Lagarde said adding that firms “will move” as a result of Brexit. Ms Lagarde made no qualification to this view based on a future agreement between London and Brussels on their economic partnership.
The statement also comes after Ms Lagarde said that she could not envisage a no deal outcome between the UK and EU. In October 2017, Ms Lagarde said: “[I] cannot imagine that would happen".
The IMF chief also repeated calls for further Eurozone integration, building on the recent publication of a draft plan for the move made by Germany and France. She equated the Brexit vote with other populist movements such as the recent Italian elections. Both “have called into question the value of European integration”, she said. [...]
Ms Lagarde said: “Simply put, the euro area should not repeat the mistakes of the past. Greater risk-sharing combined with larger national buffers would allow countries to avoid having to raise taxes and cut spending when the next downturn comes. [...]